The landscape of Alzheimer's drug development is experiencing a shift as pharmaceutical companies focus on developing drugs for the disease. This shift is similar to the opportunities seen in the obesity treatment market.
Portfolio managers are optimistic about the potential for strong disease-modifying drugs to emerge, which could lead to positive financial forecasts. However, the volatility in this sector is evident, as seen with Biogen's stock. Biogen experienced a significant surge in November 2020 following promising trial results, but the drug ultimately failed to gain FDA advisory support. Despite receiving approval the following year, Biogen withdrew the drug after debates regarding its efficacy.
Currently, two notable drugs are available in the U.S. market: Lecanemab (Leqembi) developed by Biogen in collaboration with Eisai Co., and donanemab (Kisunla) from Eli Lilly. These drugs aim to slow the progression of the disease by targeting amyloid levels in the brains of early-stage Alzheimer's patients. However, they do not halt or reverse the condition and come with significant side effects.
As the market evolves, investors are closely watching for developments that could enhance the adoption and efficacy of these treatments. Several stocks are poised for attention in the coming years as the landscape for Alzheimer's treatments continues to develop. Biogen and Eisai are under scrutiny for their injectable formulation of Leqembi, which, if approved, would allow patients to receive treatment at home. This potential shift could significantly impact patient accessibility and treatment adherence. Eli Lilly's Kisunla, which received FDA clearance in July 2024, is also a key player to watch. The company is evaluating a follow-on drug, remternetug, which is being tested in both injection and infusion formats. The late-stage trial results for remternetug could indicate whether it offers a superior treatment option compared to Kisunla.
Emerging biotech firms are also making strides in Alzheimer's research. Sweden's BioArctic AB, which discovered Leqembi, has seen its shares surge significantly since going public in 2017. Novo Nordisk is exploring the potential of semaglutide, a compound found in its diabetes and weight-loss drugs, to benefit early Alzheimer's patients. Roche is advancing its efforts with trontinemab, a drug designed to clear amyloid using innovative brain shuttle technology. UCB SA is at a crossroads with its experimental drug bepranemab, which showed promise in slowing cognitive decline and reducing tau protein accumulation.
In conclusion, the interplay between established pharmaceutical giants and innovative biotech firms will shape the future of treatment options and investment opportunities in the Alzheimer's drug market.